Zomato, a pioneer in restaurant search and discovery has announced it raising $60 million in a latest round of funding led by Temasek, Singapore-based investment company along with the existing investor Vy Capital. This totals the overall funding to $225 million which has been secured from Info Edge, Sequoia India, Vy Capital and now Temasek.
Founder and CEO of Deepinder Goyal said, “We will use this round to make investments in our new businesses such as online ordering, table reservations, point of sales and our newly launched Whitelabel platform. With this round and with some of our markets turning profitable recently, Zomato is well capitalized for at least two years. We are also stoked to have Temasek partner with us and are looking forward to building one of the largest food-tech companies in the world.”
The Zomato’s biggest investor Info Edge which would own 47% stake in company after the closing of this deal did not take part in the recent funding round, according to a statement. However, people familiar with the information say that Zomato is looking for bigger investment and this round of funding is only a means to gain some quick money into the business. Sanjeev Bikhchandani, founder and executive vice-chairman Info Edge said, “Zomato’s appetite for capital has gone up and given the size of our balance sheet, we need support from other investors.”
With the fresh funds, the company plans to invest in new business verticals like food ordering and delivery etc., Goyal added, “In the next 3-4 months we will focus on growing our services business in the countries that we are present in. We are not looking to expand into more than two new countries.” No details have been revealed regarding the two new countries.
Around a week ago, Zomato acquired two hyper-local market Gurgaon-based Pickingo and Mumbai-based Grab as strategic move to help in last-minute delivery for restaurants. Also, Zomato new launch of Whitelabel Platform, a suite of technologies for restaurants to operate business on the Internet and to launch custom-branded native mobile apps. With the new feature, restaurants can avail push notifications, real-time information and menu management and marketing tools.
Founded in 2008, Zomato functions with more than 3000 employees in 22 countries. Since its launch, it has managed to organize detailed restaurant information for 1.4 million restaurants. The company claims to have more than 90 million visits across its web and mobile app every month. Of late, the company is said to be doing profitable business. Soon the company is set to launch table reservation services Zomato Book, point-of-sale system Zomato Base and slowly rolling out their new Whitelabel platform across various countries.